TotalEnergies to buy OMV’s upstream gas assets in Malaysia
France's TotalEnergies has signed an agreement to acquire a 50% interest in SapuraOMV Upstream, a Malaysian joint venture between Austria's OMV and Sapura Energy, for $903mn, including the transfer of a $350mn loan previously granted by OMV to SapuraOMV, it said on January 31.
SapuraOMV holds a 40% operated interest in block SK408 and a 30% operated interest in block SK310, both situated offshore Sarawak in Malaysia. In 2023, SapuraOMV's operated production reached approximately 500mn ft3/d of natural gas and 7,000 b/d of condensates. These resources contribute to the Bintulu LNG plant operated by Petronas. Additionally, the development of the Jerun gas field on block SK408 is on track for startup in the second half of 2024.
“With their low production costs and low greenhouse gas intensity, SapuraOMV’s assets will perfectly fit in TotalEnergies’ portfolio and participate in meeting the growing demand of gas in Asia,” CEO Patrick Pouyanne said.
The completion of the transaction is contingent upon customary conditions precedent, including regulatory approvals. The closing is anticipated to occur by the end of the first half of 2024. In addition to its interests in block SK408 and SK310, SapuraOMV holds exploration licenses in various regions, including Malaysia, Australia, New Zealand, and Mexico, where a discovery was made in 2023 on block 30.